OPM’s stated costs to conduct background investigations increased nearly 80 percent from $602 million in fiscal 2005 to $1.1 billion in fiscal 2011, but an audit of its revolving fund has not been conducted and the extent to which the cost data are reliable remains in question, GAO has said.
Independent audits of OPM’s overall financial management system, where revolving fund transactions are recorded, identified material weaknesses in internal controls, which could affect the reliability of these cost data, according to GAO-12-197.
It said OPM attributed cost increases to more comprehensive subject interviews, increased FBI fees, and compliance with investigation timeliness requirements.
OPM develops prices for background investigations using aggregated operating costs and does not provide customer agencies with transparent information underlying its prices and price increases. Customer agency officials expressed dissatisfaction that OPM does not provide more transparent information about how it derived its prices, GAO said.
OPM agreed to provide customer agencies better information and identify and address efficiencies that could lead to cost savings.
